The nation’s stores reported dismal monthly sales for June and a recovery in retailing is unlikely in the near future. Yesterday (Thursday, July 9), the industry posted a 4.9 percent sales decline for June, in contrast to a 1.9 percent increase a year ago when tax rebate checks were burning holes in everyone’s pockets. The current drop in retail sales is the longest negative streak on record according to Thomson Reuters, as reported by the NY Times (Weak Month for Retail Sales – NYTimes.com).
- Dillard’s declined 14 percent
- Nordstrom declined 10 percent
- Saks fared better but still down 4.4 percent
- Macy’s down 8.9 percent and J. C. Penney drops 8.2 percent.
The good news, consumers’ savings rates continue to increase and deep discounting is rampant; it is a great time to pick up new clothes for sure. What does this mean for your business? It highlights the importance of your business planning process as well as the adjustments required to address evolving economic conditions. Also, the need to leverage technology to market your business has never been more important. Look for synergism with partners and business associates. Continue reading